TMI Blog1994 (12) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the appellants claimed MODVAT credit in respect of one of the inputs viz. Dipped Chafer Fabric, which they received from M/s. S.R.F. Industrial Fabrics, Viralimalai, who are the manufacturers thereof. The suppliers of the inputs in question were directed to classify the inputs by the authorities under Chapter 54 of the Central Excise Tariff as it stood at the relevant time, which heading was not covered under the Notification issued under Rule 57A of the Central Excise Rules, 1944, for the purpose of MODVAT credit. Subsequently, the Departmental authorities chose to re-classify the inputs in question viz. Dipper Chafer Fabrics from Chapter 54 to Chapter 59 on the basis of the adjudication order No. 49/89 dated 25th August, 1989 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y consequent on the revision of classification by the order of the Asst. Collector of Central Excise, dated 24-8-1987 the suppliers themselves had to re-classify the goods under Chapter 59 and the suppliers by re-classifying the goods paid extra differential duty also. Therefore, having classified the goods as directed by the Department and having paid the extra differential duty in consequence thereof, when the certificate was issued by the suppliers to the appellants, the appellants would become eligible to take MODVAT credit under law. The learned counsel submitted that the denial of MODVAT credit to the appellants by the Department on the ground that for the period in question there was no declaration in terms of Rule 57G is not accepta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 87 to 31-7-1987. For the period in question it cannot be disputed by the Department that the appellants on the showing of the Department itself would not have been in a position to claim or take any MODVAT credit. The fact remains that for the period in question the Department was assessing and classifying the goods under Chapter 54 which is not notified under Rule 57A. The appellants get a cause of action to claim MODVAT credit only consequent on the change of classification of the goods from Chapter 54 to Chapter 59 as per the orders of the Department or from the date of their knowledge about the revision of classification whichever is earlier. Therefore, in the light of the evidence on record about the payment of duty and also of differe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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